bpost has reported its Q3 2020 results with its Group operating income at €972.9m, up 10.4% year-on-year, driven by a strong performance in Parcels & Logistics Europe & Asia and North America. Group reported EBIT was €65.1m, up 81.5%, while adjusted EBIT, with a margin of 7.1%, was reported as €69.5m.
bpost Mail & Retail reported EBIT at €35.1m. Adjusted EBIT at €35.7m, down €2.7m, and a margin of 7.7%. This was primarily due to strong growth in parcel volumes handled through the mail network for Parcels & Logistics Europe & Asia. Underlying mail volume decline proving resilient at -8.2% and better than pre-COVID-19 guided -9% to -11% range.
Parcels & Logistics Europe & Asia reported EBIT at €29.0m. Adjusted EBIT at €29.7m, and a margin of 11.3%, was up €19.4m compared to the same period in 2019. Growth was attributed to growth in parcel volumes handled through the mail network. Parcels B2X volumes were up more than 49.0% year-on-year.
bpost’s North America segment reported EBIT at €5.6m. Adjusted EBIT at €8.7m, up €14.0, primarily driven by Radial North America, which recorded high growth from existing customers and clients launched in 2019. E-commerce Logistics operating income was reported to have increased by 25.2%.
Based on the current situation, facts and including the estimated financial impact of the ransomware attack, the previously reconfirmed 2020 group adjusted EBIT guidance of €240m – €270m can be revised upwards to at least €270m. Due to the second wave of the pandemic and lockdown measures taken, the visibility for the fourth quarter is however limited.
Jean-Paul Van Avermaet, CEO of bpost group said: “I’m proud to announce excellent third-quarter results of bpost group where operating profit nearly doubled from last year. This is in the first place thanks to our fully committed employees worldwide, who have contributed in the most outstanding manner and who also today in very difficult circumstances bring out daily the best of themselves for our customers worldwide. In light of this continued positive earnings momentum, we can raise our full-year 2020 group adjusted EBIT guidance to at least €270m. The world is changing at an astonishing pace, where COVID-19 has boosted e-commerce affinity and adoption and fuelled strong performance in our European and North American Parcels and Logistics divisions. Parcels & Logistics Europe and Asia EBIT nearly tripled while being positive in North America for the second consecutive quarter, resulting in a higher combined contribution of these business units to the group EBIT than Mail & Retail. This demonstrates that our business transformation is the right way forward for a viable and sustainable future.”
SUBSCRIBE TO LOGISTICS BRIEFING:
Get the latest logistics news and high level analysis delivered straight to your inbox: